FEMA will review rejected and underpaid policies that were produced by Hurricane Sandy
The Federal Emergency Management Agency (FEMA) has agreed to review the flood insurance claims that have been the subject of controversy. These claims were produced in the wake of Hurricane Sandy, but many were rejected or policyholders did not receive fair payment due to various issues. Those who had their flood insurance claims rejected or mishandled have accused the insurers behind these policies of fraud, which has brought harsh criticism against the National Flood Insurance Program.
144,000 policies will be reviewed by FEMA, as well as 2,200 claims that are currently in litigation
More than 144,000 claims will be reviewed by FEMA. Another 2,200 claims that are currently in litigation may also be reviewed by FEMA. The agency is also setting up a process that will allow others to submit their claims for review, which may go a long way in determining whether or not fraud was committed by insurers or the companies that they associate with through the National Flood Insurance Program.
Homeowners may have missed out on millions of dollars in insurance payments
According to Brad Kieserman, the deputy associate administrator for insurance with FEMA, homeowners may have been “cheated out of millions” in claims payments. Kieserman suggests that he has seen evidence of this in the past three weeks and claims that he will not attempt to deny that this issue exists. It is difficult to say what will happen to those that have had their claims unjustly rejected, but serious changes may be made to the National Flood Insurance Program in the future as a result of FEMA’s review.
National Flood Insurance Program continues to struggled under its massive debt
The National Flood Insurance Program is typically the only place for homeowners to find the flood protection that they need. While the program provides such protection, its ability to honor policies has been called into question several times. The program is currently more than $20 billion in debt, which has compromised its ability to handle insurance claims, to some degree.